Global trade has been increasing at an exponential rate. A vast network of global as well as local trades results in ample amount of financial transactions and subsequent reporting. Manual bookkeeping simply cannot handle the volume of such large financial transactions. Also, it is not possible to audit the books and consolidate reports for further analysis. A financial reporting software is capable of preparing financial statements that conform with regulatory requirements and reporting standards. The functionality of financial reporting software is by comparing historical data and estimates of future conditions to track a company’s financial progress and compare it to business expectations. The increasing importance of the financial growth of the company has resulted in the financial reporting software market over the past few years.
Rising costs of compliance and limited capabilities of existing spreadsheet solutions are some of the major drivers for the financial reporting software market. To increase investor confidence and transparency in the capital markets, the compliance costs for the financial institutions has risen significantly. Top financial players across the globe have implemented stringent regulatory frameworks after the sub prime debt crisis, which led to the depression. Such regulations will require the company to hire more professionals, therefore, increasing administrative costs. However, a financial reporting software is capable of collating data from multiple sources and standardizing reports with greater accuracy. In addition, a wide majority of the organizations use spreadsheet solutions for their financial reporting. While it’s cost effective and easy to operate, it fails to process voluminous data. Additionally, spreadsheet also are unable to provide data security, consolidated reports, and privacy, which, in turn, favors the financial reporting software market.
Furthermore, increasing complexity and velocity of financial data is also propelling the market growth. The financial market has evolved from simple accounting to complex trading such as derivatives market, hedge funds, and options market. Along with complex transactions, the sheer volume of data is also on the rise. Therefore, the demand for financial reporting software is increasing. However, data privacy and security are the major pinpoints hindering the growth of the financial reporting software market. Increasing collaborations of small and medium enterprises (SMEs) with e-commerce players is also projected to drive adoption of financial reporting software market in the coming years.
May 24, 2018- CaseWare UK Ltd, an accounting software provider to corporate and practitioners, has announced the launch of Automated Software To Make International Financial Reporting Standards Easier For Accountants.
March 3rd, 2011- Finacle™ the universal banking solution from Infosys Technologies, and IRIS Business Services, a worldwide leader in XBRL (Extensible Business Reporting Language) tools and solutions announced a strategic partnership to provide banks with the IRIS XBRL suite, enabling financial reporting process automation in compliance with XBRL standards.
North America is a very prominent region for financial reporting software market. The U.S. has a number of large banks and the need for storing data and produce reports related to costs, performance, and flexible solution (for creating multilingual financial reports) is increasing. The increasing need for optimization of these activities has driven the financial reporting software industry in this region. Increasing digitization, along with a supportive economic environment is driving the growing financial software market in North America.
Europe is the most attractive region in the world for financial reporting software due to a huge investment in financial services. Technological advances and improving macroeconomic environment provides a significant opportunity for financial services executives and policymakers to create a sustainable future for the market. Innovation and technology will play a big role in driving the future growth in the financial reporting software market in Europe.
Asia-Pacific Fintech ecosystem to grow significantly in 2017 due to Active support and initiatives by financial regulators such as Bank Negara Malaysia, Bank Indonesia, and the Monetary Authority of Singapore, which will result into a rise in adoption of financial reporting software market in the Asia pacific region. A series of industry developments in banking and insurance, growing customer expectations for service and personalization, and an increasingly competitive and globalized industry landscape are the major growth drivers for the market in Asia pacific region. In addition, significant market gains in banking in Australia and New Zealand, and in insurance in Korea are rising the demand for financial software market in this region. Technological advancements, rising integration of financial reporting software with various online applications such as automated billing features, automated bank feeds, e-commerce websites, etc., will drive the financial reporting software market growth in India.
The growth of banking and capital markets sector in Middle East region is very promising. The region's financial services sector is growing due to increasing diversity in financial products and services; growing regulatory requirements for better monitoring of processes; populations getting younger, better educated and more demanding; developing secure financial systems, banks and financial institutions across the region are investing heavily to match or outstrip their international peers. Middle East financial reporting software market expects to grow further due to Saudi Arabia's "Vision 2030. It will generate new business in the Middle East, resulting in the growth of financial reporting software market.
Global financial reporting software market
On the basis of type:
- On-premise Financial Reporting Software
- Cloud-hosted Financial Reporting Software
- Software-as-a-service (SaaS) Financial Reporting Software
On the basis of end user applications
- Small Businesses
- Midsized Businesses
- Large Businesses
On the basis of region
- North America
- Middle East & Africa
- NetSuite (Oracle)
- Workiva Inc
- Host Analytics
- CaseWare UK Ltd.